- (1.) THE matter here pertains to development rebate, the controversy being whether the entitlement of the assessee was to 15% or 25% of such rebate.
(2.) THE assessee had installed new machinery worth Rs. 7,80,645 during the assessment year 1974-75 and thereafter claimed development rebate in respect of it. The Tribunal allowed 25% development rebate and this is what led the following question to be referred to this court for its opinion : "whether, on the facts and in the circumstances of the case, the Tribunal erred in holding that taking into consideration the provisions of Section 33 (1) (b) (B) (i) (b) read with item 32 of the Fifth Schedule to the Income-tax Act, 1961, the assessee was entitled to development rebate at the rate of 25% for the year under appeal ?"
(3.) ADMITTEDLY, the machinery in question has been used by the assessee for manufacture of woollen hosiery for export. The question that arises is whether item 32 of the Fifth Schedule covers the manufacture of woollen hosiery too. This entry reads as under : " (32) Textiles (including those dyed, printed or otherwise processed) made wholly or mainly of cotton, including cotton yarn, hosiery and rope. ";